In a significant move for digital payment users in India, the Reserve Bank of India (RBI) has announced changes to enhance the usability of UPI 123Pay and UPI Lite services. This update is particularly beneficial for users who rely on these platforms for their daily transactions. RBI Governor Shaktikanta Das made the announcement on Wednesday, detailing the increased limits that will positively impact millions of users across the country.
What is UPI Lite?
UPI Lite is a simplified digital payment option that allows users to manage their digital wallets efficiently. With this service, users can conduct transactions quickly and securely without needing a robust internet connection. The recent change has increased the wallet limit for UPI Lite from Rs 2,000 to Rs 5,000, allowing users to store more funds for their transactions. Additionally, the daily transaction limit has seen a two-fold increase, rising from Rs 500 to Rs 1,000.
Enhancements to UPI 123Pay
UPI 123Pay is designed to cater to feature phone users who may not have access to smartphones or stable internet connections. This service, which was launched in March 2022, has also received a boost, as the RBI has raised the daily transaction limit from Rs 5,000 to Rs 10,000. This increase is expected to benefit a large segment of the population that relies on basic mobile phones for their payment needs.
Implications of the Changes
The enhancements in UPI Lite and UPI 123Pay are seen as a necessary step towards expanding financial inclusion in India. According to Ramakrishnan Ramamurthy, COO of Worldline in India, the increase in transaction capacity is essential to provide effective financial services to a larger audience. With UPI 123Pay and UPI Lite gaining acceptance and reach, the raised limits will likely encourage users to engage more with these platforms, driving up transaction values and frequency.
Summary of Changes
| Service | Previous Limit | New Limit |
|---|---|---|
| UPI Lite Wallet Limit | Rs 2,000 | Rs 5,000 |
| UPI Lite Daily Transaction Limit | Rs 500 | Rs 1,000 |
| UPI 123Pay Daily Transaction Limit | Rs 5,000 | Rs 10,000 |
These changes are a testament to the RBI’s commitment to advancing the digital payment landscape in India and fostering greater accessibility to financial services. By increasing the limits for UPI Lite and UPI 123Pay, the RBI is not only enhancing user experience but also paving the way for wider adoption of digital payment solutions across various demographics.
